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Pakistan, A Model for Free Markets

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Aug. 28 (Bloomberg) -- Pakistan set a floor for stock prices on the benchmark exchange, moving to halt a plunge that has wiped out $36.9 billion of market value since April.

Securities can trade within their daily limit of 5 percent ``but not below the floor-price level'' of yesterday's close, the exchange said on its Web site, without giving details. The Karachi Stock Exchange 100 index capped a six-day, 16 percent slump to 9,144.93. Trading starts at 9:45 a.m. local time.

The only question I have now is: Which knucklehead U.S. politician will be the first to make a similar call over the next month or so?

Hmm... Doesn't that instantly make the majority of the stocks instantly worthless because you won't be able to find a buyer at the "floor-price level"?

I sure as hell wouldn't buy a stock that I couldn't sell if the outlook worsened. But perhaps this sort of thing was what Buffett was talking about when he said only buy a stock if you're comfortable holding it even if the market shut down for years.